Apple said to be negotiating for earlier access to movies on iTunes

According to reports, Apple is said to be in talks with Hollywood studios to get earlier access to new movies on iTunes.

Right now, studios typically give movie theaters exclusive rights to their movies for about 90 days or more before making them available on DVD or for online purchase and rental. 

People with knowledge of the matter say that Apple is looking to provide new movies on iTunes as soon as two weeks after their release. If such a move comes to pass, it will no doubt shake up the movie entertainment industry.

It will be interesting to see how movie theaters will react to such a development. Already, shares of movie theater chains have fallen by around 2% this morning.

One of the topics that is being heavily discussed is that of piracy and encryption. Although encrypted files would make it hard for rented movies to be shared, unscrupulous users can still use a video recorder to record a movie playing on a computer screen.

That said, Warner Bros. CEO Kevin Tsujihara believes that "earlier availability of new movies could satisfy a growing consumer appetite and deter piracy."

Despite the hurdles and potential pitfalls, Hollywood studio executives are reportedly keen to explore further as they seek to find new areas of growth.

Source: Bloomberg

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